How Rio's 'dollarization' expels residents from the neighborhoods most coveted by tourists and investors

"It was very difficult to pay rent, bills and the entire cost of living. It wasn't just housing. Markets, transport, everything was becoming more expensive", says Rodrigo. He says he spent around R$1,800 per month to live in Copacabana. When looking for alternatives in Rio, he says he didn't find anything affordable. "I was looking for studio apartments in the center of Rio and couldn't find anything for less than R$2,000 or R$2,500. Can someone who earns an average salary in Brazil afford that?" Going to Niterói was the way he found to have a cost of living that was more compatible with his income, but he says he also did it for reasons related to routine and safety. The decisive episode happened after an attempted robbery close to home: "Combining this with the financial difficulty of staying in Rio, I decided to move." Today, he lives alone and pays around R$2,200 in rent for a smaller apartment, in the Ponta D'areia neighborhood, in the central region of the city. He states that the change brought significant gains in quality of life. As he works in Niterói, he drastically reduced his travel time and managed to reorganize his daily life. "I bought an electric bike, I get to work in five minutes and I have time to cook, study and do other activities." For Rodrigo, rising housing prices are making it increasingly difficult to live alone in big cities. "A lot of my income continues to go toward rent. It scares me to think about the future." In his opinion, Rio's increasingly international profile also helps explain the feeling of increase in price. "I think that, obviously, the dollarization of Rio's economy also influences a lot. It's a city for tourists, right? So much so that leisure, culture, even though they are basically concentrated in the South Zone, are still for an elite in the city." Rodrigo left Rio for Niterói after it became increasingly difficult to pay the bills: 'Everything became more expensive' Personal archive For other residents of Rio, the alternative was to stay in the city, but in neighborhoods outside the most valued axis of the South Zone. Living in Rio for six years, account manager Matheus Borges Assis, 31 years old, moved from Copacabana to Vila Isabel, in the North Zone, after noticing that property prices continued to rise, especially in regions close to the metro. The change happened about two and a half years ago. He says that today his rent is similar to what he would pay in more popular areas of the city, but he lives in better conditions. "I paid practically the same to live in an apartment with a balcony and garage." Although he recognizes that transport options are more limited in the new neighborhood and that there are fewer services and hospitals in the region, Matheus believes that the cost-benefit is worth it, because prices are generally lower and the atmosphere is closer to Rio's identity. "The South Zone has a lot of tourists and people from outside. In Vila Isabel and Tijuca, this is much less noticeable." The international boom and the pressure on housing Rio is the main destination for international tourists in Brazil Getty images Real estate market data helps to show how living in Rio while paying rent has become more expensive in recent years. The average value per square meter for rent in Rio de Janeiro went from R$36.1, in May 2023, to R$51.6 in May 2026, an increase of 42.7% — in the same period, inflation was 14.9%. This movement is more intense among one-bedroom apartments, according to QuintoAndar. The square meter of rent for this type of property has increased by 51.4% in the last three years. A survey by the OLX Group shows that the appreciation was even more intense in neighborhoods in the South Zone. Between 2021 and 2026, the average price per square meter for rent went from R$35 to R$71 in Copacabana, an increase of 101.8%. In Ipanema, the price rose from R$55 to R$115, an increase of 108.3%. In Leblon, a square meter went from R$58 to R$119, an increase of 105.7% in the same period. This increase occurs at a time of greater international visibility for Rio de Janeiro. Data from Embratur, the Ministry of Tourism and the Federal Police show that Brazil received more than 2.6 million foreign tourists in the first two months of 2026, one of the highest volumes in the historical series for the period. In this scenario, Rio de Janeiro has consolidated itself as the main destination for international visitors to the country, with 884.5 thousand arrivals in the first quarter, ahead of São Paulo and Rio Grande do Sul. In addition to traditional tourism, experts point to the growing influence of remote work and international mobility. Data from Itamaraty shows that 479 digital nomad visas were issued in 2024 and 508 in 2025. In just the first three months of 2026, another 117 foreigners obtained the document to live temporarily in Brazil while working remotely for companies or clients abroad. Although this contingent is still small compared to the total volume of visitors, experts note that the numbers may not fully reflect the presence of foreign remote workers in the country, as some of them may initially enter as tourists and remain for extended periods, taking advantage of stay arrangements permitted by immigration legislation. The phenomenon contributes to increasing the demand for properties for short and medium-term rentals in the city's most valued neighborhoods. Canadian Kyle Pearce, 42 years old, arrived in Rio de Janeiro at the beginning of April and chose to live in Copacabana. He left Vancouver, Canada, about ten years ago to work remotely in digital marketing while living in different countries. According to him, the decision also came about as a way to escape the long Canadian winters. “I created a lifestyle and a digital marketing agency that allows me to not have to be there during the winter,” he says. Canadian Kyle Pearce, 42 years old, arrived in Rio de Janeiro at the beginning of April and chose to live in Copacabana Personal Archive He intends to stay in Rio until he completes 90 days, the maximum period that a tourist can stay in the country without a specific visa. Before that, it had already visited other destinations in Central and South America, chosen in part due to the proximity of the time zone to customers in North America. During his stay in the city, he participated in events and meetings with entrepreneurs linked to the city's technology ecosystem. When comparing Rio with other popular destinations among remote workers, such as Medellín, Colombia, he states that the capital of Rio de Janeiro still receives a smaller number of digital nomads, but sees this movement growing. "Rio has many possibilities, both for quality of life and for being a good place to work." Kyle estimates that living in Rio costs around 30% less than in Canada, a difference that decreases when expenses such as health insurance and airline tickets are taken into account. "That's not why I'm here. I think people come because Rio is an interesting city, with culture, beaches and its own lifestyle." Kyle says he feels safe, even though he is aware of the city's reputation for violence, and highlights that the ease of talking to city residents and creating bonds sets Rio de Janeiro apart from other destinations where he has lived. "Brazilians were very receptive. In some countries, especially in Asia, it is more difficult to integrate with the local population. Here people talk more and make you feel part of the place", he says. In recent years, compact apartments in neighborhoods such as Copacabana, Ipanema (photo) and Leblon have started to attract investors interested in rentals for tourists and long-stay visitors Getty images Foreign investors are betting on the Rio market Economist Jorge Ferreira dos Santos Filho, professor of the Administration course at ESPM, says that the real estate appreciation observed in part of the city results from a combination of factors, such as the increase in international tourism, the favorable exchange rate for those who earn in dollars or euros and the profitability of rentals. short season in neighborhoods in the South Zone. "The phenomenon is not just linked to tourism or digital nomads. There are also foreigners who seek income and asset appreciation through the real estate market", he states. According to the economist, the demand for properties aimed at temporary rentals reduces the supply available for traditional contracts, especially in compact apartments, which are most sought after by young people, students, couples without children and the elderly. A survey by real estate company Patrimóvel, located in Rio de Janeiro, shows that foreigners accounted for 28% of purchases of studio apartments made between November 2025 and April 2026 in Copacabana, Ipanema and Leblon. Americans lead the ranking, followed by buyers from Argentina, Spain, Romania and Switzerland. For Pedro Seixas, academic coordinator of the MBA in Real Estate Development and Construction Business Management at Fundação Getúlio Vargas, the growth of international interest in Rio de Janeiro must be analyzed within a broader context. According to him, cities with a strong tourist vocation tend to attract foreign buyers, remote workers and investors looking for quality of life or diversification of assets. Seixas considers, however, that the available numbers do not indicate, in themselves, a structural transformation of the Rio real estate market. For him, the main point of attention is the indirect effects of real estate appreciation on neighboring regions and areas in the process of urban transformation. "When discussing gentrification, the focus should not necessarily be on neighborhoods that have been among the most expensive in the city for decades. The impact that deserves attention is the pressure on nearby neighborhoods and regions where appreciation can make it difficult for traditional residents to remain," he states. It is precisely this movement that residents report noticing in areas such as Glória, parts of the Center and neighborhoods outside the most valued axis of the South Zone, where the search for housing alternatives has become increasingly frequent. The impact of short-term properties Part of the discussion about the increase in housing prices involves the growth of properties intended for short-term accommodation. In recent years, compact apartments in neighborhoods such as Copacabana, Ipanema and Leblon have started to attract investors interested in rentals for tourists and long-stay visitors. The possibility of obtaining higher yields than traditional contracts helped to boost this segment, especially in regions close to beaches and the city's main tourist attractions, highlighted the experts interviewed by the report. According to Gabriela Domingos, market intelligence specialist at Grupo OLX, the growth in seasonal rentals has reduced the supply of properties destined for traditional contracts in neighborhoods of greater tourist interest. She states that the pandemic also boosted the demand for rental properties given the economic uncertainties of that period. For economist Gilberto Braga, professor at Ibmec-RJ, seasonal rental platforms have changed the dynamics of Rio's real estate market and expanded the city's capacity to receive visitors. "Seasonal rentals don't just boost the real estate market. It also strengthens Rio's tourist vocation, offering an alternative when the hotel chain is unable to absorb all the demand", he states. According to Braga, the migration of part of the properties to this model may temporarily reduce the supply of long-term contracts. However, he assesses that the market tends to seek a new balance as new projects aimed at this rental profile are launched. The debate gained strength in different cities around the world. In Barcelona, ??Spain, the city hall announced the end of licenses for short-term rentals by 2028. In Lisbon, Portugal, the Mais Habitação program, approved in 2023, restricted incentives for real estate investment and imposed limits on new licenses for temporary accommodation. Medellín, Colombia, has seen strong expansion in this market in recent years, accompanied by rising housing prices. For architect and urban planner Pedro Seixas, however, comparisons require caution. "The three cases help to understand the phenomenon, but they are different realities from Rio. In these locations there was a combination of limited supply of new properties, lack of regulation for several years and a high concentration of units intended for short-term rental", he says. According to him, although Rio follows a global trend of growth in "short stay", the city has distinct characteristics, such as the existence of multiple urban centers and the ability to expand the supply of housing in different regions. Seixas recognizes that part of the properties previously destined for conventional rental have migrated to short-term contracts, especially in more touristy areas. Still, he considers it premature affirm that the city is repeating the path observed in Barcelona or Lisbon. Increased international tourism and high exchange rates for those who earn in euros and dollars have increased the value of properties on the River Getty images "The main challenge is to increase the supply of housing, especially compact units, which are currently scarce in the Rio market", he states that the profile of buyers has also been changing in three years. Currently, the company manages more than 1,600 studios belonging to international investors. For Seixas, this group brings together diverse profiles, ranging from investors looking for income to remote workers, second home owners and retirees. Santos Filho, the city is experiencing a change in the profile of buyers. If previously the figure of foreigners interested in a second home predominated, today the presence of investors attracted by compact apartments and the hybrid use of properties, which can be used part of the year and rented out for the remainder, is growing. mandatory registration of properties intended for short-term rentals, sharing of data with public authorities, annual rental limits, restrictions in areas with strong real estate pressure and specific rules for owners who do not use the property as their main residence "In the case of Rio, the most balanced path would not be to prohibit it. The alternative would be to better regulate territorial use, protect permanent housing and provide more transparency to the market", he says. Braga believes that part of the answer involves increasing the housing supply. According to him, recent changes in urban legislation have encouraged the construction of compact units, a segment that concentrates much of the demand from both residents and investors. The professor also cites initiatives aimed at revitalizing the city's central region and the expansion of residential developments in areas of the North Zone and close to the main transport corridors. For him, the expansion of supply tends to reduce pressure on prices over time. "What we observe is a more orderly growth in the city, with new developments emerging in different regions and serving different profiles of residents", he states.